BLOOMBERG MARKET CONCEPTS
CERTIFICATION TEST PAPER FULL
QUESTIONS AND VERIFIED ANSWERS
●● What happens if a borrower is a high credit risk?
Answer: The price of the bond will naturally be less, and the yield will
be higher a a percentage, however, the likelihood of actually receiving
the full yield is low.
●● As a general rule, what percent of debt/GDP will make bond yields
spike?
Answer: There is no general rule.
●● Why are bond yields referred to as nominal?
Answer: Because inflation is not a factor in calculating the real value of
the yield.
●● What does debt servicing refer to?
Answer: Sustaining one's existing amount of borrowing by paying
coupons.
●● What is the output gap?
Answer: The gap between real GDP and potential GDP.
CERTIFICATION TEST PAPER FULL
QUESTIONS AND VERIFIED ANSWERS
●● What happens if a borrower is a high credit risk?
Answer: The price of the bond will naturally be less, and the yield will
be higher a a percentage, however, the likelihood of actually receiving
the full yield is low.
●● As a general rule, what percent of debt/GDP will make bond yields
spike?
Answer: There is no general rule.
●● Why are bond yields referred to as nominal?
Answer: Because inflation is not a factor in calculating the real value of
the yield.
●● What does debt servicing refer to?
Answer: Sustaining one's existing amount of borrowing by paying
coupons.
●● What is the output gap?
Answer: The gap between real GDP and potential GDP.
